Total factor productivity growth on Britain's railways, 1852-1912: a reappraisal of the evidence

Crafts, Nicholas, Mills, Terence C. and Mulatu, Abay
(2005)
Total factor productivity growth on Britain's railways, 1852-1912: a reappraisal of the evidence.
Working papers in large-scale technological change (07/05).
Department of Economic History, London School of Economics and Political Science, London, UK.

Abstract

This paper revisits the issue of the productivity performance of pre-World War I Britain’s railway system with an improved dataset and with modern time-series econometrics. We find a slowdown in TFP growth between 1850 and 1870, after which it stabilized at about 1.1%. An analysis of company-level productivity rejects the claims that there was a regulation-induced revival of productivity performance in the railway sector after 1900 but, on the other hand, it supports the claim that there was some managerial failure during the period.